^aPrudential Financial, Inc., 751 Broad Street, 16th Floor, Newark, NJ 07102, U.S.A. E-mails: arthur.ryan@prudential.com; greg.loder@prudential.com

Abstract

Coming out of the perfect storm of a bear market in equities, poor credit markets, and low interest rates, the U.S. insurance industry faced a number of new realities based on changing consumer demand and expectations. Consumers wanted new guarantees in their investments, choice and flexibility in distribution, and simplicity in their financial products. The baby boomers echo this new consumer demand through their desire for retirement security. The life insurance industry is well positioned to deliver to this population. No other financial services industry can help individuals accumulate wealth, protect its value, convert the wealth into lifetime income, and transfer it to future generations like the life insurance industry can. There are risks ahead for the U.S. life industry; however, it can take advantage of opportunities in the future if it can continue to put consumer needs first.